Acceptable Quality Level - AQL

What is 'Acceptable Quality Level - AQL'

A statistical measurement of the maximum number of defective goods considered acceptable in a particular sample size. If the acceptable quality level (AQL) is not reached for a particular sampling of goods, manufacturers will review the various parameters in the production process to determine the areas causing the defects.


The AQL is an important statistic to companies seeking a Six Sigma level of quality control.

BREAKING DOWN 'Acceptable Quality Level - AQL'

The AQL of a product can vary from industry to industry. For example, medical products are more likely to have a more stringent AQL because defective products can result in health risks. Companies have to weigh the added cost associated with the stringent testing and potentially higher spoilage due to a lower defect acceptance with the potential cost of a product recall.

RELATED TERMS
  1. Acceptance Sampling

    A statistical measure used in quality control. A company cannot ...
  2. Product Recall

    The process of retrieving defective goods from consumers and ...
  3. Six Sigma

    A quality-control program developed in 1986 by Motorola. Initially, ...
  4. Quality Control

    A process through which a business seeks to ensure that product ...
  5. Quality Control Chart

    A graphic that depicts whether sampled products or processes ...
  6. Sampling

    A process used in statistical analysis in which a predetermined ...
Related Articles
  1. Markets

    What is Systematic Sampling?

    Systematic sampling is similar to random sampling, but it uses a pattern for the selection of the sample.
  2. Investing

    A Guide To The Six Sigma Green Belt

    Curious about the Six Sigma Green Belt? Here's what you need to know.
  3. Investing

    Explaining Standard Error

    Standard error is a statistical term that measures the accuracy with which a sample represents a population.
  4. Markets

    How Does Sampling Work?

    Sampling is a term used in statistics that describes methods of selecting a pre-defined representative number of data from a larger data population.
  5. Markets

    What is a Representative Sample?

    In statistics, a representative sample accurately represents the make-up of various subgroups in an entire data pool.
  6. Markets

    How Lean Six Sigma Works

    Based on both lean management and Six Sigma, Lean Six Sigma helps companies create a management system that promotes perfection through efficiency.
  7. Investing

    What's Involved in Quality Management?

    Essentially, quality management entails overseeing all activities and tasks needed to maintain excellence.
  8. Trading

    Understanding Statistics

    Statistics provide the means to analyze data and then summarize it into a numerical form.
  9. Markets

    Explaining the Central Limit Theorem

    Central limit theorem is a fundamental concept in probability theory.
  10. Markets

    How to Use Stratified Random Sampling

    Stratified random sampling is a technique best used with a sample population easily broken into distinct subgroups. Samples are then taken from each subgroup based on the ratio of the subgroup’s ...
RELATED FAQS
  1. What is the difference between Lean Six Sigma and Six Sigma?

    Learn the differences between Six Sigma and Lean Six Sigma. These Kaizen philosophies streamline business processes to increase ... Read Answer >>
  2. How can I use systematic sampling with stratified sampling?

    Learn how the systematic sampling technique can be used with stratified sampling method and when the two methods should not ... Read Answer >>
  3. What percentage of the population do you need in a representative sample?

    Learn about representative samples and how they are used in conjunction with other strategies to create useful data with ... Read Answer >>
  4. How can a representative sample lead to sampling bias?

    Learn how using representative samples alone is not enough to make sampling bias negligible and why elements such as randomization ... Read Answer >>
  5. What's the difference between a representative sample and a convenience sample?

    Learn the difference between convenience sampling and representative sampling and the advantages and disadvantages of each ... Read Answer >>
  6. What's the difference between a representative sample and a random sample?

    Explore the differences between representative samples and random samples, and discover how they are often used in tandem ... Read Answer >>
Hot Definitions
  1. Quantitative Trading

    Trading strategies based on quantitative analysis which rely on mathematical computations and number crunching to identify ...
  2. Bond Ladder

    A portfolio of fixed-income securities in which each security has a significantly different maturity date. The purpose of ...
  3. Duration

    A measure of the sensitivity of the price (the value of principal) of a fixed-income investment to a change in interest rates. ...
  4. Dove

    An economic policy advisor who promotes monetary policies that involve the maintenance of low interest rates, believing that ...
  5. Cyclical Stock

    An equity security whose price is affected by ups and downs in the overall economy. Cyclical stocks typically relate to companies ...
  6. Front Running

    The unethical practice of a broker trading an equity based on information from the analyst department before his or her clients ...
Trading Center